In accordance with the terms of the tender, the Petitioner was required to pay by May 30, 2023, the sum of NIS 2,711,942 for development expenses.
- On May 1, 2023, two months after winning the tender, the Petitioner applied to the tenders committee with a request to cancel its win and return the bank guarantee money. The basis of the cancellation request was a claim of deception and a lack of-Disclosure both as to the scope of the building rights in the lot and as to the legal proceedings taken against the Authority by the winners of the first tender, as follows:
"[...]
- In the framework of the tender documents, the Israel Land Authority (hereinafter: "ILA") did not present in a clear and detailed manner, as required by law, the scope of the rights and uses of the land and refrained from providing and/or presenting any details in relation to the approved building rights in the land.
- Given the lack of disclosure required by the ILA, my client discovered that the permitted uses of the land according to the provisions of the plans are the construction of a one-story building above the entrance and one floor below the entrance.
The provisions of the plans allow for construction of up to 150 square meters of main area, which constitutes a significantly lower and unreasonable scope of construction in relation to the area of the land (about 2 dunams). In practice, this is a scope of rights that causes a real and illogical distortion in the ability to exploit the rights in the land and the possibility of a lessee / owner to realize the potential inherent in the land in view of the area of the land coverage.
[...]
- Moreover, to my client's astonishment, it turned out that the land was marketed by the ILA at the end of 2020 in the framework of tender Mr/2020/33.. and that the companies that won the first tender, with great experience and reputation, chose not to complete the transaction... And they are currently conducting a legal proceeding with the ILA...
[...]
- ... You have also chosen to hide the very existence of the active legal proceedings... In the framework of these arguments, arguments were raised that could constitute substantial and irrelevantly relevant information for any reasonable bidder. The fact that this material figure is not reflected in the framework of the tender documents ... It is a blatant breach of the duty of good faith and the duty of disclosure in contractual engagements, and to an even more stringent extent, of the duty of administrative fairness as established in case law
00 (Appendix 16 to the Petition)